Identity theft is the fastest growing crime in America according to the Federal Trade Commission. Affecting one out of every four American families, identity theft is simply the theft of information such as a name, date of birth, social security number, or a credit card number. Armed with this consumer information, criminals and terrorist organizations commit crimes against individuals, businesses and financial institutions in over hundreds of millions of dollars in damages.
Today, creditors issue credit on three key pieces of information, including a valid name, an address, and a social security number. Using a social security number, creditors validate consumer identity and credit history through a credit reporting agency, such as Equifax Corporation, Experian, Inc. (formerly TRW, Inc.), or Trans Union Corporation.
Victims of identity theft often do not realize they have become victims until they attempt to obtain financing on a home or a vehicle. Only then, when a lender tells them that their credit history makes them ineligible for a loan, do they realize something is terribly wrong. When they review their credit report, they first become aware of credit cards for which they have never applied, bills long overdue, unfamiliar billing addresses, and inquiries from unfamiliar creditors. Even if they are able to identify the culprit, it may take months or years, tremendous emotional anguish, many lost financial opportunities, and large legal fees, to clear up their credit history.
Identity theft occurs in many ways, ranging from the careless sharing of personal information to intentional theft of purses, wallets, mail, or digital information. In public places, for example, thieves engage in “shoulder surfing” by watching from nearby locations as their victims use telephone calling card or credit card numbers or may listen in on conversation if the victim gives his credit card number over the telephone. Inside victim's home, thieves obtain information from personal computers while the unknowing victims are on-line. Outside your home, thieves steal your mail, garbage, or recycling. Outside medical facilities or businesses, thieves engage in “dumpster diving” going through garbage cans, large dumpsters, or recycling bins to obtain identity information which includes credit or debit card receipts, bank statements, medical records like prescription labels, or other records that bear your name, address, or telephone number.
A need exists, therefore, for a method and system for eliminating identity theft and opportunities to conduct identity theft.